Guest Post: Mortgages Were Pledged to Multiple Buyers at the Same Time

[Joanne98]

By George Washington

Bank of America alleged in a court filing this June:

It appears as though many loans and other mortgage-related assets have been double and even triple-pledged to various constituencies

April Charney – a consumer lawyer with Jacksonville Area Legal Aid – and CNBC’s Dennis Kneale noted in February 2009 that courts have found that some mortgages have been sold again and again to different trusts, when they should have only been sold once.

Kneale explained that that is the reason that two different banks sometimes try to simultaneously foreclose on the same home:

And as long-time foreclosure investigator Nye Lavalle writes:

On thousands of occasions I stated to regulators, CEOS, banks, Fannie and Freddie that the practices of the banks were that they were double and multi-pledging assets and pledging paid off and refinance notes to securitizations. This is something April, Max and I have discussed for years now. Now, they come and admit that each of my allegations were true. Without analyzing the deal, as complex as they are, you WILL NEVER KNOW IF THE FORECLOSING PARTY HAS “ANY” RIGHT TO FORECLOSE!!!

http://www.nakedcapitalism.com/2010/10/guest-post-mortgages-were-pledged-to-multiple-buyers-at-the-same-time.html

[GodlessBiker]

1. Agreed. This assumption out there that a bank has the right to foreclose but it is only the ...

paperwork which is in a state of disarray is not to be trusted.

.

[nunyabidness]

2. Ask for proof of ownership of the mortgage.

[Demeter]

3. There is no end to the chicanery

and I hope no end to the prison terms that get handed out freely from this massive fraud.

[Recursion]

4. Was Zero Mostel doing this or something?

"You can't sell more than 100% of anything..."